Introduction: The rapidly growing digital product marketplace
How major advancements in checkout technology are giving creators nearly untapped potential to acquire more customers and secure more profit
The business of selling digital products online has grown into a massive industry – $950B massive, to be exact, and growing by the minute.
The creator economy is booming. Creator businesses have experienced tremendous growth in the past two years. Breaking this out by monthly revenue, we can see that nearly all creator businesses are growing over 100% year over year across key metrics like order count and revenue. Factor in better tools for revenue and checkout optimization and the future looks even brighter.
Despite colossal success, creators still have a hard time determining where they stack up amongst their online seller peers. That’s because community within the creator space doesn’t exist the way it does in other industries.
There are tens of thousands of smaller pockets of creators. You work in your own bubble, in your corner of the world. Rarely are you getting the chance to connect with peers and share knowledge about how your operation stacks up against the industry standards.
Still, knowing where you fall in the mix and what others like you are doing is critical to improving your business.
But consumer spending is down as interest rates and inflated prices are up, so there’s never been a better time to understand how your business is performing.
The economy threatens to slow down your growth, but what signals should you be looking for to know early if your sales are feeling the effects? How do individual creators find – and keep – their footing, in the face of growing economic uncertainty?
Well, that’s where we come in.
At SamCart, we are obsessed with helping creators maximize their potential. Every extra sale you close, every extra dollar you capture goes straight to funding your dream and fueling your life.
In this book, you will get every ounce of data we can squeeze from more than $3.5 billion in sales from creators that use our platform. You’ll discover competitive advantages and peer trends in checkout conversion, payment technology, average order value, and more.
SamCart empowers solopreneur brands and digital creators to ditch generic checkout pages as we provide you with a top-down checkout operating system. There’s no better place to go hunting for new learnings than that critical intersection where visitors become customers, and the journey that ensues the moment it kicks off.
With firsthand insights at SamCart, we built this report as a resource for you as a creator to:
→ Provide statistical benchmarks for you compare your business against competitors in your own niche
→ Identify opportunities for growth by exploring what revenue generating strategies others are using
→ Explore where competitors in your niche are finding their customers
→ Understand the true impact social media has on your own customer acquisition
→ Discover the revenue impact of strategies like Affiliate Programs, Cart Abandonment, and more
→ Learn the effects of “Expansion Revenue”, and how big the opportunity is for growth inside of your industry
→ Embrace how consumer mindset is shifting and why eCommerce – specifically selling digital products – will grow rapidly over the next year
This report will identify areas of opportunity within your own business and give you a true look at how you're performing when stacked up against your peers. Leverage this data & the latest advancements in checkout technology to make 2023 a defining year for your brand.
From one solopreneur to another, I can’t wait to show you what we have inside.
As you dive in, there are going to be a lot of new terms. Let’s start by defining all the lingo that we use every day here in SamCartland.
AOV: Average Order Value - The average dollar amount spent each time a customer places an order. Calculated by taking total non-recurring revenue, divided by the total number of orders placed.
LTV: Customer Lifetime Value - The average value (in dollars) of a customer. Used to understand how much you can expect to collect from a customer over the lifetime of their relationship with your brand. Calculated by taking total revenue, divided by the total number of paying customers you have ever received.
Order bump - Products that customers can add-on to their order before they check out. Usually priced cheaper than your main product or if not, very closely related to the main product being purchased.
Upsell - Products that customers can add on to their order after they check out, using their payment information now stored on file with just one click.
Downsell - A product that is offered to customers should they say no and decline to purchase a specific upsell. “Oh, you don’t want that? No? How about this?”
CAC: Customer Acquisition Cost - The average (in dollars) it takes to bring in a new customer. Calculated by the total amount spent in advertising, content creation, etc., divided by the number of new customers you’ve received.
GMV: Gross Merchandise Volume - The sum total of sales collected. GMV could be measured across the entire SamCart platform, or used to measure an individual creator’s business.
About the Data
17,507 creators across 14 industries.
This report is built on the data we have gathered from thousands of creator brands who use SamCart every day to sell their products, services, and physical goods. These brands have collectively sold more than $3.5 billion worth of products, across dozens of industries.
Our team of data analysts have pored over that massive set of data, and worked with our team of creator experts to pull out the most useful, actionable findings we could provide.
These data points are measured by industry or Gross Merchandise Volume (GMV), but some data points will offer both views, giving you a more granular look into where you stand amongst other creators.
Who is Selling Online?
The global eCommerce market is expected to surpass $6.3T in 2023 with digital product sales making up nearly ⅙ of that valuation, over $1 trillion. That’s MASSIVE.
Traditional eCommerce may have paved the way for online sellers, but the rapidly expanding digital product marketplace is turning the industry fully on its head.
It democratizes selling online in a way physical product merchants can’t.
Post-pandemic, studies show that digital literacy has greatly improved.
The democratization of eCommerce through digital product sales
Post-pandemic, studies show that digital literacy has greatly improved.
Because digital literacy has improved and more consumers than ever are able to find, purchase, and use digital products instantaneously, consumer demand has skyrocketed.
Consumers need real solutions to actual questions or problems they face, and creators are able to level that playing field and get products, services, and digital goods into consumers’ hands faster than ever. Plus, the start-up costs for creators to sell digital products is significantly less than the massive cost barrier to entry to sell and ship physical products.
The online product marketplace caters to as many industries and verticals as its physical product counterpart. On SamCart alone, there are fitness influencers, art enthusiasts, self-help and wellness experts, business & finance professionals, bird-watching experts, infant sleep trainers, and everything in between.
Industries Represented on SamCart
Where do you fall amongst your peers in earnings?
For others with higher monthly GMV, it’s their main income stream.
💡Top creators generating $50k+ a month earn 10x more than those in the next-highest GMV tier. Top earners average 1,164 orders per month (nearly 7x the amount of orders placed in the next-highest GMV tier).
Average Orders and Average Monthly Revenue
This means they have more customers, spending more, more often.
That is the idea that launched SamCart. That is the north star to every feature we build. Every day, we watch this principle play out in real time.
Top sellers are getting more customers, helping them spend more (resulting in higher AOV), and intentionally driving repeat sales.
So what are these top sellers doing, and how can you replicate their strategy in your own acquisition, marketing, sales, and retention efforts?
In this report, we’ll show you how SamCart’s 7-, 8-, and even 9-figure creators generate profit and scale their business. Learn the tactics, techniques, and technologies of top creators to make your business instantly more profitable – starting with how, where, and when you acquire new customers.
Interested in a call with an expert to dive into your business' metrics? Sign up and we'll be in touch shortly!
Effective customer acquisition is an art
How creators amass followings and convert them into happy customers
Every thriving eCommerce business relies on a mix of acquisition channels, but digital product creators especially rely on channels that will help them build a following.
But a follower does not a customer make – creators must establish good rapport and build trust with their audience as well as understand their unique challenges, goals, and desires. Only then will their audience or social media following purchase their products, services, and digital goods.
The creator–customer relationship is pivotal to the success of a digital seller’s business. So it should come as no surprise that social media poses the best conversion rate of any digital marketing channel. It’s the easiest medium to form relationships, then convert that equity into paying customers.
💡Top creators get 5-10x more traffic from social media than those in lower earning tiers, and Facebook drives the majority of traffic no matter what you earn per month.
It seems obvious that brands with bigger followings can drive more traffic, and thus make more sales. But don’t miss the important underlying lesson here:
💡If you can generate even 200-300 clicks from social media each month, you could have a multiple six-figure business on your hands.
Plus, look closely at where that traffic is coming from: Even all these years after the much-ballyhooed “demise of Facebook”, Facebook still reigns supreme for customer acquisition across SamCart. Trendy TikTok is still a low-converting traffic source because its algorithm insists you remain on its platform, not browsing other creator’s sites. LinkedIn proves to be successful only in specific use cases, and Instagram and YouTube followed Facebook at a distant second and third-place.
Still, the most widely used social media platforms differ with each industry, particularly on channels like YouTube for music creators:
💡 Regardless of where creators are finding them, consumers of digital products are converting 2-4x higher than traditional eCommerce consumers.
This rings especially true for those generating between $1 and $10,000 in monthly revenue. These relatively newer creators tend to offer lower-priced products and are therefore more accessible to a wider audience and drive higher conversion rates of their products.
Average Conversion Rate
One thing we have known for years is that when you shorten the path from discovering a product to becoming a customer, conversion rates go up. We are incredibly proud of these average conversion rates, and the competitive advantage SamCart creators enjoy.
When quantifying why these conversion rates are so high, and why half of SamCart creators are able to achieve conversion rates higher than these, we discovered that the same rules still apply. By the nature of the tool, SamCart creators simply can’t overcomplicate the process of selling their stuff.
We’ll talk more about the selling and checkout processes later in this book, but let’s shift from acquisition to conversion as we move through the customer journey.
Conversion Rates by Acquisition Source
Getting traffic to your website is just one hurdle. Converting them is a completely different story.
Knowing where to put time and effort can dramatically affect your monthly conversions. Even though, as you can see in the chart below, many creators see traffic come through Instagram and YouTube, but they don’t turn out to be effective conversion channels.
Traffic is good, but revenue is better.
When planning a digital acquisition strategy, don’t sleep on Facebook. Whether it’s paid or organic, put serious consideration into this channel. Second, remember that your website and email campaigns are where your audience will get to know, like, and trust you. Make your calls to action clear and leverage these two channels to boost your overall conversion rates.
Takeaways: How are top digital creators acquiring customers?
While customer acquisition is, of course, essential to making sales, there are many other factors that ultimately impact the bottom line and afford the top creators the largest share of the earnings pie. However, here are some important takeaways for your own acquisition efforts:
- Facebook still reigns supreme as the strongest acquisition channel (by a long, long shot) over other social media platforms for digital creators
- Creators making the most money each month have the broadest social media presence, likely adapting their messaging to fit the unique audience and features each platform offers
- Optimize the highest converting channels, like your website, emails, and Facebook ads
- If your biggest audience is on a low-converting social media channel, try to direct them to your website and email list as best as you can
The nuances of marketing for digital product sellers
How top creators harness insights and forge effective partnerships to market their offerings
Moving through the sales and marketing funnel, our data shows us that top creators use two particular strategies to market their offerings, generate sales, and refine their offerings: affiliate marketing and A/B testing.
These strategies aren’t unique to digital sellers, but one can infer why the highest-grossing SamCart creators have them in their arsenal, why they utilize them frequently, and what it means for creators wanting to scale their business.
The power of building an affiliate army for your product
People trust other people’s recommendations before they trust a business or brand – point blank.
Every sale you make as a creator boils down to a customer’s ability to trust you, or in the case of an affiliate partnership, a creator, affiliate, or influencer selling your products on your behalf. This trust proxy is why affiliate marketing should be a part of your larger marketing plan.
💡 More than half of SamCart creators who earn $500k or more in GMV use affiliates to share their products with a wider audience.
Creators Tapping into Affiliates
Affiliate Impact on GMV
But, as a result of affiliate marketing, sellers on SamCart earning six figures or more need to generate fewer orders than those making five figures or less. This means they can spend less time, money, and effort acquiring new customers on their own.
At SamCart, our Affiliate Center
gives you the flexibility to build your own affiliate army, track their results, and pay them for their commission. It even allows both you and your affiliates to profit from recurring subscriptions, so you’re netting passive revenue month after month.
The power of unlocking insights through A/B testing
Marketing is a science, and that is made evident by A/B testing data observed in SamCart users.
💡Top creators A/B test more frequently than lower earners, and the insights unlocked help top creators determine what will make them more profitable.
Average number of A/B tests
There is no faster way to know you’re making more money than to run an effective A/B test – something SamCart’s top sellers clearly understand.
💡 Almost every single one of our 7-figure and above creators actively use A/B testing to find new ways to raise their conversion rates and average order value.
Whether A/B testing which copy or imagery resonates best with customers to split testing checkout flows, top creators run more tests more frequently, which helps them make informed decisions on the most effective, profitable approach.
SamCart’s A/B testing lets you quickly discover ways to increase conversion rates, grow your customers base, and scale your business. Split test to determine Automatic Pricing based on what your customers actually need.
Takeaways: How are top digital creators marketing their products?
In addition to other strategies and channels within your larger marketing plan – email & SMS, video content, etc. – working in the two tactics that are netting top SamCart creators the most profit could elevate you to the next revenue bracket you have been seeking.
- More than half of the sellers on SamCart making $500k or more a month use affiliates to help sell their product, netting over $10,500 in average order value as a result
- The highest earning sellers also A/B test the most frequently, likely using those insights to take the most profitable approach
The strategies top creators use to sell more
SamCart features designed to boost conversions and scale revenue let creators earn more profit from fewer customers
Creators are drawn to SamCart for many reasons. But if you had to choose one, the answer is Expansion Revenue.
Expansion Revenue is what you get when you allow your customers to spend more while they are ordering. Think Amazon’s recommended products, and how easy it is to go from buying a $12 shampoo to spending more than $50 because Amazon reminded you about the post-it notes, grill cleaner, and pet brush you’ve been looking at.
In SamCart’s world, order bumps and upsells are the most popular features for capturing Expansion Revenue. The best acquisition and marketing strategies in the world can only get prospective customers to your page, but it’s the strategic use of revenue-optimizing features that will increase average order value with each purchase, allowing you to work less for more revenue.
Simply put: When you give your customers the freedom to spend more money, they will – and SamCart feature usage proves this.
When putting together this book, there was really only one stat that made my jaw drop. No surprise here — it is related to the power of expansion revenue.
💡 SamCart creators that use order bumps and upsells increase their AOV by +129%. Meaning, on average, adding order bumps and upsells to your checkout process more than doubles the amount of revenue you collect.
Average GMV & Upsells
Dear reader, this is the single biggest opportunity for your business, your family, and your life.
Ideal Pricing for Revenue Optimization
Sure, it may be easy to say “you need to offer order bumps and upsells,” but what is the ideal pricing for those? In the table below, we mapped out the ideal type of expansion revenue tool to use, either an upsell or order bump, and the price for it based on whatever your primary product is priced at.
The numbers are astounding. There is so much more value that creators can capture once their audience has already made the decision to purchase, simply by offering more purchase opportunities and pricing them at the sweet spot.
Diving deeper, we see the same story play out again and again…
💡Sellers that use upsells make over 7x more than sellers that do not. For order bumps, that number is almost 5x.
The use of order bumps and upsells is yet another key differentiator between those in the highest and lowest revenue tiers. Creators earning between $1-10k are ~35% less likely to use upsells and order bumps than their peers making half a million or more in revenue, as shown in the chart below.
As sellers optimize sales and increase their average order value, unsurprisingly, their overall revenue grows. As every customer becomes more valuable, the reliance creators have on new customers making net new purchases decreases.
To put it plainly, these features make you more money. When your business makes more money, a whole new world of opportunities opens up to you (shout out to my boy, Prince Aladdin of Agrabah).
- Will revolutionize the performance of your ad campaigns, unlocking scale and volume that you will never reach otherwise.
- Provides more incentive for affiliate partners to promote your offers, bringing in new waves of new customers that cost you nothing to acquire.
- Means more profit in your pocket. What would happen if all of the sudden your customers started paying you double? How would your business change? How would your life change?
That’s the power of Expansion Revenue.
Based on this data, top sellers on SamCart wouldn’t be selling as much without leveraging these revenue-optimizing strategies. But how do order bumps and upsells work to make creators more profitable?
→ They allow sellers to create additional revenue by easily offering more products or services on top of their existing offerings
→ They help creators meet customer demand
→ They increase the average order value of every purchase, meaning creators make more money from the same amount of customers. Therefore, they can spend less time and money acquiring new customers.
Here’s the really cool part: This is true across almost every industry represented on SamCart. It even extends to the entire digital seller industry – customers take every opportunity to spend more when presented with the opportunity. If you aren’t allowing them to spend more, you’re leaving money on the table.
Here’s a look at the median product price for each industry and the final average order value after these creators take advantage of expansion revenue by offering order bumps and upsells during checkout:
Industries like Business & Finance are leading the way by growing AOV by 12x. Even industries that are perceived as offering cheaper products, like photography and music, are still growing their AOV significantly when these revenue-boosting features are in use.
While these features ultimately net creators more profit, there is yet another shared practice amongst top sellers – and that is recouping profit they may have otherwise lost through cart abandonment strategies.
How cart abandonment helps top creators recoup lost profits
To be a top-earning creator doesn’t mean you have to be constantly making net-new sales.
Total order count increases as creators decrease cart abandonment, meaning you don’t have to constantly be trying to acquire new customers to buy new things; instead, focusing on closing those abandoned sales can help make up for serious lost revenue.
💡Top sellers on SamCart that use cart abandonment make 15.6x more revenue than the average creator.
Top Creators Using Cart Abandonment Make 3x+ as many Orders
💡 30% of SamCart creators making $500k or more in revenue use cart abandonment practices to recoup lost money. Compare that to less than 5% of those making between $10k to $500k, and less than 2% of those earning $10k or less.
Creators Using Cart Abandonment
With these figures in mind, you should be thinking about abandoned cart management as an equally important – if not a more important – part of your business than acquiring, marketing to, and selling to net new customers, because there are thousands of dollars left on the line from people who simply didn’t check out.
SamCart’s suite of cart abandonment-curbing features allow you to re-engage with prospects who abandoned their carts then use coupons, discounts, or deals to make the order even more enticing.
Takeaways: How are top digital creators generating sales?
Data doesn’t lie – top creators across the digital eCommerce landscape aren’t just making one-off sales and relying on acquisition only; they’re using effective tools to scale revenue with existing buyers and win back lost sales.
- Creators using order bumps have nearly 5x the GMV
- Creators using upsells have nearly 7x the GMV
- Employing cart abandonment strategies is a foolproof way to generate additional revenue and profit you would have otherwise lost without having to find new customers or even generate repeat sales
Moving through the customer journey, you’ve seen the data on how top creators are acquiring, marketing, and selling – but how are they retaining customers and generating additional sales from them? Read on to understand customer lifetime value in digital product selling.
The importance of high Customer Lifetime Value
Continue Delivering Value Through Subscriptions
Selling once can be difficult enough, so why not sell a product that will continue to reward you long after the selling process is complete? Yeah, I’m talking about subscriptions.
The top creators on SamCart make as much as 20% of their revenue from subscriptions. And those making $500K+ GMV have double the amount of revenue coming from subscriptions as those creators with less than $10K in GMV.
As creators grow their business, they intentionally build more opportunities for their audience to continually engage with them. Rather than constantly focusing on acquisition of new customers or getting the customer to buy something new every month, smart creators offer subscriptions to regularly bring value to their customers.
Revenue From Subscriptions
If you don’t sell subscriptions yet, don’t worry, you can still optimize customer LTV by targeting your energy on customers who have already purchased from you and turn them into repeat customers.
How repeat customers are the golden geese of your business
With so much focus on acquisition, creators often forget the importance of generating sales from existing customers – especially when our data shows that less than 12% of purchases are made from repeat customers. However…
💡Only 11.81% of purchases are made by repeat customers, yet they amount to almost 44% of total revenue made on SamCart.
No amount of money can buy the value of building and maintaining relationships with your customers.
Repeat Customer Revenue
To make the numbers simple, if your business does $100 in revenue, $56 came from eight customers. That’s an average order value of only $7. The rest of that $44 dollars came from just one customer who’s ordered from you before.
If nearly half of a creator’s revenue can potentially come from repeat purchases, how can creators broaden their efforts to include an acquisition-focused strategy AND a retention-focused strategy?
The answer lies in checkout technology.
A seamless checkout process can make or break a customer’s experience and be the deciding factor on whether or not they want to purchase from you initially, and then again.
The industry is shifting towards more intuitive and trustworthy checkout processes, and SamCart offers the best checkout technology of any eCommerce platform with our newly released checkout operating system
Let’s discuss the impact a better checkout experience can have on your bottom line, including:
- Checkout Anywhere technology
- Digital wallets
- Buy Now, Pay Later
- and more
The future of checkout and how top creators intend to harness its power
Until now, the checkout experience for most creators – for most anyone that sells anything online, physical or digital – has felt like a separate experience from the experience on their website, sales page, or social platform.
In fact, your checkout process has been an obstacle in the way of making more sales, because they:
- Load slowly
- Leave a ton of room for errors
- Don’t play nicely on every device
- Create confusion and doubt
- Miss the mark on where your customers really are online
SamCart’s coined “one-page funnel” concept led so many of our creators to ditch long, complicated sales “funnels” in favor of shorter experiences, fewer pages to load, and easier checkouts.
But there was more we could do.
Now, we’ve gone even further and introduced SamCart’s CheckoutOS
, a suite of game-changing checkout technologies and conversion boosting features.
Whether you use CheckoutOS or not, it is imperative that you use tools that make checkout less of an obstacle and more of an opportunity to convert more customers and keep them coming back again and again.
We’ve already collected some incredible data around best checkout practices – see where your checkout stacks up to those SamCart creators are using.
The importance of having checkout, anywhere
As much as we wish they were, our customers aren’t hanging out on our checkout pages waiting for something new to purchase.
Nay, they’re browsing social channels, checking your emails, visiting sites linked in your link tree, or watching videos on YouTube. That’s where they’re hanging out, and creators lose a ton of conversions trying to transition them off of what they’re already doing and onto product and checkout pages.
One of the biggest opportunities in checkout technology is bringing checkout where your customers already are, rather than bringing your customers to checkout. At SamCart, we’re calling this Checkout Anywhere but the idea of having checkout anywhere can and should be universal to any creator’s strategy.
💡Embedding checkout wherever your customers are makes your funnel even one step shorter, which our data shows increases sales dramatically.
At SamCart, through Embedded Checkout, we achieve this with a small snippet of HTML that creators can place on a homepage, drop it under a link in bio, add it to a webinar room, or embed it right onto a sales page. This way, customers can buy without ever leaving where they were hanging out or got interested in your product or services.
Even more important, having checkout live anywhere means optimizing it for mobile. Oberlo notes that mobile commerce takes nearly 75% of all commerce market share. If your checkouts aren’t optimized for mobile, and you don’t have the ability to place that checkout in places your customers can easily access from their phones or tablets, you are only capturing 25% of your target audience.
Use checkout technology that allows you to add eCommerce capabilities wherever your customers are, and optimize that experience for mobile devices so your customers can checkout automatically. In fact, SamCart’s Checkout Anywhere feature, which includes Express and Embedded Checkout, was specifically designed for mobile checkouts.
The impact of shorter, frictionless checkouts
In every test we performed prior to releasing CheckoutOS…
Shorter Checkouts = Higher Conversions
One test in particular looked at checkouts that required contact info, billing address, and shipping address.
💡 When eliminating just the shipping address, the conversion rate improved by 13.4%. When removing the billing address from checkout, conversions jumped 35.1% over the initial group.
Making your checkout form as short and simple as possible by removing unnecessary fields that you don’t absolutely need to fulfill your products or services is a surefire way to boost sales.
Our newly released Express Checkout easily outpaces the competition for speed and performance, scoring almost 40% higher than the already fast, reliable SamCart checkouts.
In fact, by leveraging our Express Checkout feature, one creator saw their conversion rate jump from 3.15% to 8.91%.
That’s nearly tripling the amount of conversions simply by reducing the checkout friction.
When you give your prospects the chance to breeze through the checkout process, they could be three times more likely to become a customer – and could very well become a customer for life.
One-Click Checkouts will become the new standard
iOS users know the glory of buying things with their face. That is – via Apple Pay.
We tested One-Click Checkout when adding it to our own suite of offerings, and the opportunity it creates to boost conversions is unlike anything we’ve seen in a while. How?
💡 It cuts checkout time to under 9 seconds flat – 10x faster than any other platform.
Every creator is also a consumer. When you put your consumer hat on, you know the pain of entering your information every single time you go to checkout. Technology that lets you access your stored credit card and contact information has always been a welcome sight, but now it’s becoming the standard as consumer demand increases.
Remember how we mentioned that the key to customer retention lies in better checkout technology? Tools like Stripe Link
and Apple Pay
enable one-click technology from securely stored credit card information.
Remember how we mentioned that the key to customer retention lies in better checkout technology? Tools like Stripe Link
and Apple Pay
enable one-click technology from securely stored credit card information.
In fact, purchasers don’t even have to be repeat customers of yours – they just have to have checked out previously on ANY page that used Stripe Link. Their info is stored securely, and they can access that info and purchase with just a single click.
When you make it easier for your customers to buy things the first time around, it’s infinitely easier to bring them back around for a second, third, or however many repeat purchases.
💡 46% of our top users’ sales come from their past customers buying again.
With One-Click Checkout technologies, you’ll eliminate the friction of traditional checkout pages and hand your customers a seamless checkout experience they can – quite literally – do with one click.
The potential for more conversions with Buy Now, Pay Later
Buy Now, Pay Later crushes the conversion and completion rates of traditional payment plans
For years, creators both on and off SamCart have leveraged payment plans to help customers break payments up into multiple installments. With these traditional payment plans, customers who renege on their payment plan fulfillment ultimately cut into the creator’s bottom line.
Our data shows only a 59.26% completion rate of these traditional payment plans, so one of the biggest opportunities for creators lies in Buy Now Pay Later (BNPL) technology from partners like Klarna, Affirm, and Afterpay.
💡Buy Now, Pay Later can increase average order value by as much as 40%, improve cart conversions by 30%, and increase purchase frequency by 36%.
Creators get paid in full immediately, and BNPL partners take on all the risk. Creators can increase conversions on higher priced items, without scaring customers away from sticker shock or waiting for payment plans to come through.
And those high-ticket items are important to sell – though you may sell fewer of them, they have the potential to increase revenue from fewer buyers than your smaller ticket items.
💡Plus, high-ticket products (those priced at $499 and above) make up only 5% of all of SamCart’s transactions – yet account for 55% of all revenue processed through our platform.
BNPL helps you increase conversions on your higher ticket items while eliminating the risk of customers not completing their payments or feeling buyer’s remorse.
Takeaways: How are top digital creators leveraging checkout technology?
There’s so much more to come in the advancement of checkout technology – especially from the SamCart team – but the initial findings from shortening checkout speed to placing checkout anywhere and incorporating BNPL technology into checkout flows should be compelling enough for any creator to start seriously considering their checkout process as a business tool.
💡 With possibilities of improving conversion rate by 30-35% and average order value by almost 40%, creating a checkout experience to be flexible and customizable isn’t a nice-to-have – it will be a make-or-break for your business.
And now, with the addition of our new Checkout Operating System, we look forward to studying how shortening that path even more with Checkout Anywhere, stored credit cards, and one-click checkout impacts these numbers.
What every creator should take away from this report
From acquisition to marketing, sales to retention, every step in your customer journey should be optimized for maximum profitability. The data presented to you today should help you identify how you stack up against other creators and provide moments in your own business you can improve.
But it cannot be stressed enough: quite literally none of that will matter if you don’t automate and improve your checkout experience. Your customers are demanding a faster, more seamless checkout that exists where they are online. When you bring this technology to their (digital) doorsteps, you’ll watch your conversions absolutely skyrocket and overcome nearly all of the challenges creators face in today’s market.
Go forth and conquer. We believe in you.